- Ready
- Fire
- Aim
People should be thinking how come aiming comes at last. Let's discuss about how this would work in the financial markets. Before that, Ready here refers to gaining adequate knowledge and gathering more information about the goal which we are committed. Fire refers to go and work towards the goal, which means take action after gathering required knowledge and planning
Lastly Aiming. In financial markets, no one can predict what will happen tomorrow or day-after but in investing few experienced people can predict what will happen in next 5 years or 10 years down the line. So, one should not keep waiting to start working towards the goal. It is always advisable to gain adequate knowledge and with proper plan one should start doing the hard & smart work in achieving the goal. During the course of action, we can make as many as adjustments to our investments to make it work better
Let's take an example of Nifty. During the start of this year (2021), Nifty was trading around 14,000. In the month of February 2021, it gained around 1300 points and crossed 15,000 and it was consistent enough and currently trading around the range of 17,700. If one was scared and did not take any position would have missed this great rally. One should take the position having the confidence on the market and should be available to make any adjustments in Options if it goes against the position taken. So, the important knowledge required here is about "what to be done if the market moves against me?". It should never be like "What will i do if the market moves against me, better will wait for 5% correction"
The trader / investor who is capable of making the adjustments on the journey itself can succeed. Not the one who is waiting for the smooth journey and will think of taking a decision. Actually, the second kind of person is the one who is more scared of the markets and will have no patience. A small move in markets against their position, they will book loss. They will compound losses instead of profits
Aiming should be part of the entire journey consistently.
B G Nareshkumar
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